Wed, Jan. 14, 1:20 PM
- A slew of tech companies have posted steep losses on a day the Nasdaq is down 1%.
- Major decliners include Pandora (P -5%), LED giant Cree (CREE -5.9%), cloud HR software leader Workday (WDAY -4.1%), chipmakers Ambarella (AMBA -5.3%), Pixelworks (PXLW -3.7%), Audience (ADNC -3.6%), Spansion (CODE -4.4%), and Cypress (CY -3.9%) (the last two are merger partners), OLED materials/IP provider Universal Display (OLED -4.2%), industrial automation tech provider Echelon (ELON -4.8%), and P2P lending giant/recent IPO LendingClub (LC -4.8%).
- Possibly affecting OLED: LG Display (NYSE:LPL) has been ordered to halt operations at an OLED TV panel production line following a gas leak that killed two workers.
- Cree and Pandora aren't far removed from their 52-week lows; the former reports on Jan. 20, and the latter on Feb. 5. LendingClub, whose selloff follows a volatile Tuesday, could be affected by a neutral coverage launch from Susquehanna.
Dec. 18, 2014, 2:04 PM
- With the help of stronger-than-expected hardware sales, Oracle (ORCL +9.2%) beat FQ2 estimates in spite of a 400 bps forex headwind (twice what was originally expected). FQ3 guidance was conservative after taking forex pressures into account.
- The numbers have been good enough for Oracle to surge to new highs and receive a slew of target hikes, and to lead many enterprise tech names to outperform amid a big market rally. The Nasdaq is up 1.9%.
- Microsoft (MSFT +3.2%), Cisco (CSCO +2.3%), EMC (EMC +3.7%), VMware (VMW +5.1%), and beaten-down IBM (IBM +2.8%) are among the enterprise tech names outperforming today. Others: SPLK +4.6%. CA +3.5%. RHT +3.4%. VRNS +6.3%. PCTY +5.8%. JIVE +4.6%. VMEM +5.2%. SAAS +4.7%. BRCD +3.8%.
- Oracle's healthy cloud software numbers are drawing attention: While traditional software license revenue fell 4% Y/Y, its SaaS/PaaS revenue rose 41%. SaaS/PaaS bookings totaled $170M, and are expected to be "well over" $1B in FY16 (ends May '16). Fusion cloud app bookings rose over 100%.
- On the CC (transcript), Oracle performed its customary trash-talking of cloud app rivals. "We are clearly growing faster than Salesforce (CRM +4%) and were more than three times the size of Workday (WDAY +3.2%)." Both firms are posting solid gains.
- Oracle's numbers come as Bloomberg reports the Chinese government is looking to "purge most foreign technology from banks, the military, state-owned enterprises and key government agencies by 2020." IBM, Cisco, and other U.S. firms have already seen their Chinese sales fall sharply following last year's NSA spying uproar.
Nov. 25, 2014, 2:51 PM
- "While investors’ first reaction was negative, we believe the initial FY16 'guidance' is very preliminary and conservative. The initial mgmt. view for the current FY15 called for rev growth of ~50%, and we are now modelling 68%," writes UBS, reiterating a Buy on Workday (NYSE:WDAY) post-earnings.
- The firm also thinks Workday's FQ4 outlook is conservative, and is forecasting FQ4 revenue $2M above the high end of Workday's guidance range. "FY16 looks to be a strong year for Fin’l Mgmt pdts, helped by Insight analytic apps [becoming generally available]. Europe has been a bit slow due to (1) entrenched competitors and (2) sales org. changes early in the yr, but should improve next yr."
- Canaccord (Buy) also isn't worried about the FY16 commentary ... for now. "If you dig into the numbers, the fact that WDAY intends to run its OpEx based on 40% revenue growth seems more like a conservative way to manage expectations than a statement of concern about the pace of business."
- Summit Research (Hold) is more cautious, noting Y/Y deferred revenue growth slowed to 8.3% in FQ3 from FQ2's 15.7% and FQ1's 19.7%. "We would expect deferred growth to at least match or exceed revenue growth in a SaaS business model like Workday’s."
- Wedbush (Outperform) thinks large deal activity was "more muted" in FQ3. But it's "optimistic about the [FQ4] contracting and large deal outlook, as our checks indicate that WDAY integrators are heavily loaded with projects and prospects, and Y/Y billings comparisons don't look overly difficult."
- Several targets have been cut, but that might have as much to do with Workday's YTD performance as anything else.
Nov. 25, 2014, 9:15 AM
Nov. 24, 2014, 5:43 PM
Nov. 24, 2014, 5:23 PM
- On its FQ3 CC, Workday (NYSE:WDAY) says it isn't providing FY16 (ends Jan. '16) guidance for now, but adds it isn't assuming it will see 40%+ growth. The consensus is for 47.2% growth.
- Shares have added to the AH losses they saw after the cloud HR leader provided in-line FQ4 guidance to go with an FQ3 beat.
Nov. 24, 2014, 4:32 PM
- Workday (NYSE:WDAY) is guiding for FQ4 revenue of $219M-$222M, +54%-56% Y/Y and in-line with a $220.5M consensus. That isn't being received well, given Workday's history of providing above-consensus guidance.
- Subscription revenue rose 75% Y/Y in FQ3 to $164.4M, exceeding total revenue growth of 68%. Workday's unearned revenue balance rose 44% Y/Y to $508.1M.
- Though Workday had a net loss of $5.3M, unearned revenue growth led free cash flow to total $13.3M. GAAP costs/expenses rose 58% Y/Y to $266.5M - sales/marketing spend amounted to $80.7M, R&D $85.3M, and G&A $28.8M.
- FQ3 results, PR
Sep. 22, 2014, 1:45 PM
- High-beta tech stocks are selling off hard as the Nasdaq registers a 1.3% decline. The selling is broad-based, with Internet, solar, and enterprise tech stocks all well-represented among the ranks of major decliners.
- Major Internet decliners: BIDU -4.7%. ANGI -7%. YELP -5.9%. AWAY -5.1%. CHGG -5.9%. GRUB -5.8%. P -5.2%. Z -4.6%. TRLA -4.8%. ATHM -7.9%. BITA -7%. DANG -5.9%. WB -5.3%.
- Solar: FSLR -4.5%. SCTY -7.5%. SPWR -4.5%. DQ -7.6%. JKS -5.5%. ASTI -6.3%. ENPH -5.5%. CSIQ -4.8%.
- Enterprise: WDAY -5.4%. GIMO -6.7%. VMEM -7.7%. IMPV -4.8%. MKTO -4.9%. SPRT -5.1%. CSOD -5.5%.
- Others: HIMX -4.6%. SIGM -5.6%. WATT -9.7%. CYNI -5.3%. ADNC -5.7%. PXLW -5%. SWIR -5.8%. MITK -6%. OCLR -6%.
Aug. 29, 2014, 1:00 PM
- Low expectations and a high short interest (11.9M shares as of Aug. 15) are proving a good mix for Veeva (VEEV +18.1%) following its FQ2 beat and guidance hike. Several firms have raised their targets.
- Workday (WDAY +5.5%), which sold off yesterday (and took peers down with it) following its FQ2 report, is following Veeva higher. As are Veeva partner Salesforce (CRM +2.1%) and several other cloud software names. NOW +2.9%. CTCT +3.4%. JIVE +2.5%. CSOD +2%. ULTI +1.9%. MKTO +1.9%.
- "We like [Veeva's] momentum with new products, the pace of customer deployments, and view the second-half guidance as likely conservative," says Deutsche (Buy).
- Pac Crest (Outperform) likes the fact Veeva's billings and subscription revenue each rose over 60% Y/Y, and that its large deal activity also grew. It sees a $5B addressable market for life sciences CRM/content management software.
Aug. 28, 2014, 2:45 PM
- Workday (WDAY -4.7%) has received several target hikes after beating FQ2 estimates and upping its FY15 (ends Jan. '15) guidance. But there have also been some cautious notes focused on cloud HR/financial software giant's valuation.
- Citi observes Workday trades at 15x 2015E sales, and says it has trouble seeing upside catalysts at current levels. Goldman points out Workday is trading at 11x estimated enterprise value/billings even if its upside scenario plays out.
- Cantor (target raised to $121) sees several reasons to be bullish. Among them: The ramp of Workday's recently-launched recruiting product; the pending launch of Workday Student; an enterprise software upgrade cycle; strong international growth (echoes of Salesforce); and expected announcements at the November Workday Rising conference.
- Wedbush (target raised to $106) expects new big data/analytics products to be shown off at the conference. It also sees room for a fresh guidance hike in 3 months, though it thinks it might be smaller than yesterday's hike.
- Workday used its CC (transcript) to hike its FY15 billings guidance by $50M to $940M-$960M (above revenue guidance of $760M-$770M). FQ3 billings guidance is at $225M-$230M (above revenue guidance of $200M-$205M).
- Salesforce (CRM -2%) and several other cloud software names are following Workday lower. CSOD -3.3%. MKTO -3.3%. DWRE -2.2%. JIVE -1.6%. N -1.4%.
Aug. 27, 2014, 4:16 PM
- Workday (NYSE:WDAY) expects FQ3 revenue of $200M-$205M, above a $195.6M consensus. FY15 (ends Jan. '15) revenue guidance is at $760M-$770M, up from a prior $730M-$750M and above a $748.7M consensus.
- The unearned revenue balance rose 4% Q/Q and 48% Y/Y in FQ2 to $481.5M; Y/Y growth was at 54% in FQ1. Free cash flow was -$37.4M, thanks in part to capex of $28.4M.
- Sales/marketing spend +68% Y/Y to $70.9M; R&D +60% to $59.9M; G&A +42% to $14.6M. The figures compare with revenue growth of 74%.
- Subscription revenue rose 77% Y/Y to $143.7M, and professional services 63% to $43.1M.
- FQ2 results, PR
Aug. 27, 2014, 4:06 PM
Jul. 30, 2014, 3:58 PM
- Ultimate Software (ULTI +7.4%) beat Q2 estimates on the back of a 26% Y/Y increase in recurring revenue (84% of total revenue). The cloud HR software vendor also disclosed on its CC (transcript) it added three new enterprise clients with 10K or more employees; the largest has 40K.
- Full-year guidance for 23% revenue growth (25% recurring growth) has been reiterated. Q3 guidance for revenue of $127M is roughly in-line with a $127.3M consensus.
- A number of cloud software peers have also rallied. Cloud HR/talent management peers Workday (WDAY +6.5%) and Cornerstone OnDemand (CSOD +5.1%) are among the biggest gainers, but others are also doing quite well. CRM +2.7%. NOW +4.7%. LPSN +5.3%. MKTO +4.1%. CNQR +4.8%. JIVE +3.6%. N +4.2%.
Jul. 8, 2014, 12:45 PM
- Echoes of April: Following a big May/June rally that propelled the Nasdaq to new post-Dot.com bubble highs, momentum stocks are nosediving nearly across the board today.
- The selloff comes ahead of Alcoa's afternoon Q2 report, the unofficial start of earnings season. Some of the cash going out of equities is flowing into Treasurys.
- Notable 6%+ decliners: TWTR -7.6%. DDD -6.5%. SSYS -7.9%. P -7.7%. LNKD -7.1%. DATA -10.1%. SPLK -9.3%. WDAY -7.7%. YELP -8.3%. GOGO -6.5%. YOKU -6.6%. ZU -10.5%. NOW -6.8%.
Jun. 20, 2014, 1:27 PM
- Oracle missed FQ4 estimates thanks in part to weaker-than-expected license growth that has stoked fresh cloud competition fears. FQ1 guidance is in-line.
- Tibco, which has been dealing with competitive and execution issues for several quarters, posted FQ2 numbers that were slightly better than the outlook provided in a June 3 warning, but also issued weak FQ3 guidance.
- Many enterprise software names are trading lower, including several cloud software firms and a few companies viewed as big data/analytics plays: VMW -1.3%. SPLK -1.9%. DATA -2.3%. INFA -1.6%. MKTO -3.8%. JIVE -2.5%. CSLT -4.1%. BSFT -3.3%.
- Workday (WDAY -2.2%) is also among the decliners. Larry Ellison again went out of his way to take shots at the cloud HR leader during Oracle's earnings CC (transcript). "We already have a huge lead over Workday in cloud ERP ... In HCM, we are dominating Workday in Europe, and beating them in dozens of core HCM deals here in North America." Workday will probably beg to differ on the specifics.
May. 30, 2014, 1:49 PM
- High-beta enterprise tech names are particularly well-represented in a momentum stock selloff as Splunk, Nimble Storage, Violin Memory, and (especially) Infoblox fall post-earnings.
- Analytics/data visualization software vendors Tableau (DATA -6.5%) and Qlik (QLIK -4.1%), often hyped (like Splunk) as big data plays, are among the decliners. As is flash storage vendor Fusion-io (FIO -5.4%), which competes with Violin and (to a lesser extent) Nimble. But they're far from the only ones.
- Security decliners: FEYE -6.5%. CUDA -8.4%. IMPV -7.4%. PFPT -5.7%. VDSI -4%. QLYS -4.5%.
- Cloud software decliners: WDAY -4.1%. JIVE -4.3%. MKTO -7.4%. NOW -4.9%. TNGO -5.1%. CSLT -6.9%. TXTR -6.7%. RALY -11.6%.
WDAY vs. ETF Alternatives
Other News & PR